Posted on 06/04/2010 3:17:44 PM PDT by Eepsy
Living with perils such as invasive moths, extreme temperatures and fluctuating grape prices, winemakers always have plenty to worry about. But this year they’re concerned about something that could be far more destructive to their business: HR 5034. House Resolution 5034 is a bill working its way through the House Judiciary Committee. Written and promoted by the National Beer Wholesalers Association (NBWA), with support from the Wine and Spirit Wholesalers Associations (WSWA), the bill was introduced in April by four congressmen from states with few wine growers or wineries. Disingenuously named the CARE Act, the Comprehensive Alcohol Regulatory Effectiveness Act of 2010 could end direct shipping of wine and others forms of alcohol in the United States, and reverse the 2005 ruling by the Supreme Court that opened up direct shipping to millions of consumers around the country. Shipments from wineries to consumers out of state would be affected; in-state shipments could continue.
“We’ve fought so hard for direct shipping, and we’ve gained some ground,” Stacie Jacob, executive director of the Paso Robles Wine Country Alliance said. “We need to keep gaining ground versus reversing that.” To understand the history of this bill, you need to go back to the passage of the 21st Amendment, which ended Prohibition in 1933 and put states in charge of alcohol regulation. As lawsuits around the country from wineries and consumers challenged the states’ ability to control interstate sales of wine in recent years, the Supreme Court weighed in five years ago and ruled that states’ power to control alcohol sales cannot trump the Constitution’s Commerce Clause, which prevents states from restricting interstate trade. The 2005 Granholm decision led to a wave of winery direct-shipping challenges and new laws, and direct-to-consumer wine shipping is now legal to varying degrees in 37 states and the District of Columbia.
This has been good for consumers and good for wineries. It has also been good for states’ tax revenues thanks to the new bills, which nearly all have required out-of-state wineries to remit state and local taxes on the wines they sell into each state. The only group this hasn’t been good for is the middlemen — the wine distributors who profit from their role in the “three-tier system.” The NBWA and the WSWA — two of the most powerful lobbying organizations in America — introduced HR 5034 in the name of “states rights,” claiming that the law is needed to allow states to maintain firm control of alcohol sales, as well as prevent alcoholism and underage drinking. Most opponents of the bill say it is a power grab to guarantee alcohol wholesalers get a cut of every bottle of wine sold in America.
“This is truly a ploy on the part of the wholesalers and the beer folks,” she said, “and you can see very clearly from who’s on the committee and who is pushing this.” Two leading industry groups, the Wine Institute of California and the Family Winemakers of California, are both strongly opposed, as are many consumer organizations.
The full impact on small wineries won’t be felt immediately, but it will be devastating if the bill is passed. Jason Haas, general manager of Tablas Creek Vineyards in Paso Robles, has been a strong voice against the legislation and met recently with Rep. Kevin McCarthy, R-Bakersfield, along with other Paso Robles winemakers.
“Although the bill has yet to be brought to the floor of the House for a vote,” Haas wrote on his blog, “I did not want to be complacent about its prospects.” Haas explained that even with half of his sales going though distribution, more than 20 percent of his revenue comes from direct, out-of-state sales.
“I don’t know a lot of businesses that could immediately withstand a 20 percent loss in their revenues,” Haas said.
He further explained that many small wineries in the county rely on direct sales for 100 percent of their revenue. With the six largest distributors in the country controlling more than 50 percent of the total alcohol sales, it is all but impossible for a small winery to get picked up by a distributor, so direct sales are the only option.
“I think it would end up putting a lot of small wineries out of business,” Haas concluded. In a statement regarding the bill, McCarthy acknowledges the 200 wineries in the 22nd Congressional District, and writes, “I am concerned about legislation and regulation that would negatively impact that important part of our local economy.” He further said he understands the bill would affect those wineries’ ability to sell to customers directly and said, “I will continue to support their right to do so.”
While the bill is currently in committee, and there is some doubt it will ever be brought for a vote, there is an enormous amount of money and effort being expended by lobbyists to push it forward. They already have more than 100 co-sponsors of the bill on record, including, astonishingly, three from California.
About the bill Name: HR 5034 or the Comprehensive Alcohol Regulatory Effectiveness Act (CARE Act) Introduced: April 15, 2010 Text of bill: http://thomas.loc.gov More online: www.stophr5034.org, www.freethegrapes.org Janis Switzer can be reached at 434-5394 or via e-mail at janisswitzer@yahoo.com
Read more: http://www.sanluisobispo.com/2010/06/03/1164451/wine-notes-house-legislation-may.html#ixzz0pvQXmLfP
We obviously need Wine Neutrality Legislation.
Also note that I really don’t like acidic wines.
Then let me heartily recommend to you a nice box of Franzia "Chillable Red."
Vintage 2010, of course...
I don't have a pH meter, but know I don't like to drink straight vinegar.
My Sonoma County relatives (on my wife's side) may laugh at me, but I truly enjoy my boxed red wine with ice cubes...
Bottoms up!
I recently went to Geyser Peaks and did some red wine tasting. I didn't like any of the vintages (I'd drink them if offered for free, but not search them out to buy). I thought they were too acidic. Maybe more aging would change that, but I doubt it.
I'm all for what tastes good to me. If good wine comes in boxes, so be it. Red wine should be served warm though.
I don’t get why beer sellers would care about interstate wine shipments. Do they think that if they can’t get a California wine the’ll buy a local beer to replace it?
Greed.
The lobby group seeks to bring back the "middleman" into the alcohol-selling equation.
I hope this bill falls as flat as a three-day old glass of beer...
Stout beer too!
I can drink stout hot, warm, chilled, cold, just not stale.
I was recently introduced to the fact that wine in the United States is mindboggelingly cheap compared to, for example, Malaysia where the MINIMUM PRICE is $22.00.
If you own a small winery, it's almost impossible to get distribution out of state.
It's terribly expensive to gain...and to maintain. You need a sales force, a promotion program, maybe advertising.
So, most small wineries started cultivating visitors to their area, established a web presence and started marketing via mail order.
Many of them have built tidy little businesses out of this kind of operation -- which would otherwise be impossible.
All this legislation would do is destroy what they've worked years to build -- without really benefitting the wholesalers and retailers who are pushing the bill. Much of those wine purchases will simply vanish -- because they're special occasion/loyalty purchases.
This is a big guy vs little guy power play -- intended to diminish competition. Exactly what Democrats specialize in.
With that, I'll leave the thread with one thought:
Some of the best domestic reds I've ever tasted. And I was in the wine business...
I like cheap red wine with 7-Up and ice. Ok, it’s basically wine-flavored soda pop, but why is that so bad?
I also like going to wineries and trying the expensive stuff, but there are times when a wine cooler is pretty good.
I don’t care for wine, except I fell in love with icewine last year. It’s beautiful stuff.
How’s the cabernet? My hubby is a fiend for big reds and we have an anniversary coming up.
I recently bought a very good icewine at Costco. They often carry one or two for a reasonable price. Their Kirkland champagne is also very good.
Two Buck Chuck bump.
The FR Master Ping list indicated you are interested in all things oenological.
That's what I mean. If I couldn't buy Brand A wine I would buy Brand B instead, I wouldn't buy beer. Are you sure it isn't a chess move to stop the interstate shipment of these new super beers small brewries are developing?
It's Three Buck Chuck now. ;)
If they can do this to wine why not everything else? Why not maple syrup or apple cider or any other product you can buy directly from the producer via eBay? That’s the problem with this legislation, once they open the door every industry and their middlemen will want to get their cut. That means higher prices for us and less competition.
Had a lovely unfiltered Chard tonight with Japanese seafood. The paring worked beautifully. {{{hugs}}}
I know firsthand how hard it is to sell wine. I have a bottle of 1981 Krug Clos du Mesnil I wanted to sell. Then I found out you can't put it on Ebay, you can't put it on Craigslist and I can't take it to a liquor store and ask them to sell it on consignment because it's illegal. There are some online wine auctions but they want you to ship it to them in advance then sell it at no reserve. I don't think so.
I wanted my wife to drink it on New Year's eve but she refused because she said it would be wasted on her palate. So it just sits there, waiting to be discovered by some future archaeologist.
“Red wine should be served warm...”
Why?
Recommendation: Invite over a couple of friends (at least one who appreciates fine wines). Set out four wine glasses to include your wife. Drink, and enjoy!
To facilitate the evaporation of the volatile aromas and because the flavors are more pleasant/stronger (to me anyway). YMMV
Depends on the meaning of the word "warm." It's a safe bet to never serve any wine above 70ºF. Over 78º, wines may suffer irreparable damage.
That's what happens every time I try them. What am I doing wrong?
I appreciate good red wine, and I drink it at room temp after it has had an oportunity to breathe.
Favorites include good Pinot Noir, a Sharaz, a Merlot, a Cabernet Sauvignon. I am not much into ‘sweet’ or white varieties, though I have some in my wine rack. Of the whites, a Pinot Grigio might be my preference.
No warmer than 65F, surely. Room temperature, as opposed to body temperature.
I don’t know where the “serve reds at room temperature” legend got started. Complex red wines are best served ~65ºF. Thus, “room temp” works if you live deep in a cave or a Scottish castle.
I used to like dry, heavily oaked Sauvignon Blanc, but haven't found any lately.
but I truly enjoy my boxed red wine with ice cubes...”
One of my very best friends has always put ice in her red wine and in her beer. Been doing it for nigh onto 50 years and won’t drink either any other way.
That's about the temp in my dinning room in the Winter. Wear a sweater.
Perfect! I have a couple of bottles I’ve been saving for such an occasion.
I'm sorry, Grams, but I have extremely high standards and gourmand sensibilities.
My ice cubes are ONLY for my boxed wine -- and NEVER for my beer!
lol!
I don't have any friends who appreciate anything finer than Mad Dog. If you're ever in Georgia stop over, I've got the glass just not the class :-)
I don't have any friends who appreciate anything finer than Mad Dog. If you're ever in Georgia stop over, I've got the glass just not the class :-)
We have a bottle of ice wine sitting around. I keep hoping the right occasion will come up to open it. Yes, it is beautiful stuff.
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